Shares of HEG surged over 6 percent on October 8 after the company acquired an 8.23 percent stake in industry rival GrafTech International for Rs 248.62 crore. GrafTech, with a market capitalization of approximately $416.61 million is listed on the New York Stock Exchange and specializes in the production of graphite electrodes, a segment closely aligned with HEG's core business.
At 11.27 am, shares of HEG were trading at Rs 2,333.75 on the NSE. The surge in the stock was also accompanied by heavy trading volumes. As many as four lakh shares changed hands on the exchanges so far, higher than the one-week daily traded average of two lakh shares.
GrafTech International boasts a competitive portfolio of low-cost, ultra-high power graphite electrode manufacturing facilities, including some of the highest-capacity plants worldwide, with a global presence.
In May, HEG approved the demerger of its graphite business into a new entity and the merger of Bhilwara Energy with itself, aiming to unlock value for shareholders. The graphite segment accounted for 94.41 percent of the company's total turnover in FY2024, with its listing expected in 2025.
Post-demerger, the existing company will shift focus to green energy ventures, including hydro and wind energy, advanced carbon solutions, and other emerging businesses. The demerger will involve a 1:1 share swap ratio, as announced on May 22.
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